$MST Buybacks
Meridian Ventures developed a pool plugin that collects a portion of the Meridian Finance protocol's earnings and performs weekly buybacks to enhance long-term value and strengthen the treasury.
As a finance protocol, it's no surprise that Meridian leverages its revenue and TVL to generate fees. At Meridian, these fees are strategically used to reward $MST holders for their participation in the ecosystem. Through extensive research and experience, we've found that the most lucrative approach for both individual and institutional investors is a combination of real yield paid via staking, consistent price growth driven by weekly buybacks, and strategic partnership deals.
Since November 2024, we transitioned to using buybacks as a way to reward $MST holders. These buybacks are fully transparent, announced every Wednesday on Meridian's social media accounts, and tracked on the buybacks dashboard here. Recent buyback activity suggests Meridian is on pace to achieve an annual deflation rate of approximately 5% of the max supply (10 million tokens) and around 25% of the circulating (unstaked) supply.
Meridian's weekly buybacks are funded by four primary revenue sources, each contributing flexible percentage:
MST-ETH Liquidity Pool: $AERO generated from trading fees and liquidity provision on Aerodrome.
Meridian Lend Reserve Factor on Incentivized Markets: Income derived from reserve fees collected on lending activities within incentivized markets.
USDM Redemptions & Mints: Fees earned through the minting and redemption of USDM stablecoins.
Partnerships: Additional contributions from collaborative efforts with ecosystem partners.
This balanced approach ensures sustainable and consistent funding for weekly buybacks.
Do note: All buybacks are made on the open market DEX pairs.
Objective: To measure the efficiency and impact of buybacks funded by Meridian Finance revenue on the MST ecosystem.
-Total MST Bought Back: Monitor the cumulative number of MST tokens repurchased. - Revenue Allocation: Break down the revenue streams contributing to the buyback fund (e.g., lending fees, trading fees). - Average Buyback Price: Calculate the average MST price at the time of each buyback to assess cost-effectiveness.
Market Impact:
- Price trends before and after buybacks. - Liquidity changes in MST trading pairs. - Circulating Supply Reduction: Analyze how buybacks influence the circulating supply of MST over time. - Protocol Revenue Growth: Measure the correlation between increased revenue streams and buyback capacity.
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